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Rise in material prices hit project execution and company margins
With more than 60 per cent rise in steel and bitumen prices and over 30 per cent rise in cement and diesel prices since the beginning of this year, CW connects with analysts, consultants, builders and contractors to get an overview of the impact on projects and company margins.
Builders and contractors are in a battle to complete projects. Over the past couple of months (January-March 2022), the price of steel (per mt) has increased by about 63 per cent, cement (Rs per bag, Bihar) has gone up by approximately 36 per cent, bitumen (HPCL Vizag Rs/MT) surged by about 61 per cent and high-speed diesel (Rs per litre) has sky-rocketed by about 30 per cent.
Going by recent reports, price points have hit the industry hard in recent times, and how! Steel prices have shot up to Rs 86,000-90,000 per tonne. Cement prices have touched Rs 380-400 per bag. Prices of plumbing, electrical, tiles and sanitary materials have doubled. Labour costs have also increased up to 50 per cent. The ripple effect of this price surge has been making headlines:
and there’s been much more...
- Shriyal Sethumadhvan
To read more, CLICK HERE
- price surge
- construction raw materials
- fuel and transportation costs
- supply chain costs
- fixed-price contracts
- hike in input costs
- EBITDA margins of construction players in FY22
- CareEdge Ratings
- increase in raw material prices
- Ramesh Nair
- CEO
- India & Managing Director
- Market Development
- Asia at Colliers
- aluminium
- steel and TMT bars
- Ukraine war
- net exporters of steel
- impact on projects and company margins
- per cent rise in steel
- impact on the construction industry
- forecast
- Steel price up by
- Rise in material prices
- Shriyal Sethumadhvan
- Tushar Shah
- Director
- CareEdge Research
- Anand Kulkarni
- Director
- CRISIL
- Anuj Puri
- Chairman
- Anarock Group
With more than 60 per cent rise in steel and bitumen prices and over 30 per cent rise in cement and diesel prices since the beginning of this year, CW connects with analysts, consultants, builders and contractors to get an overview of the impact on projects and company margins.Builders and contractors are in a battle to complete projects. Over the past couple of months (January-March 2022), the price of steel (per mt) has increased by about 63 per cent, cement (Rs per bag, Bihar) has gone up by approximately 36 per cent, bitumen (HPCL Vizag Rs/MT) surged by about 61 per cent and high-speed diesel (Rs per litre) has sky-rocketed by about 30 per cent.Going by recent reports, price points have hit the industry hard in recent times, and how! Steel prices have shot up to Rs 86,000-90,000 per tonne. Cement prices have touched Rs 380-400 per bag. Prices of plumbing, electrical, tiles and sanitary materials have doubled. Labour costs have also increased up to 50 per cent. The ripple effect of this price surge has been making headlines:Maharashtra realtors plan to stop constructionDevelopers in Delhi-NCR to halt constructionand there’s been much more...- Shriyal Sethumadhvan To read more, CLICK HERE